A Weekly Sports Magazine Publishes a Special Edition for the World

question 50

Essay

A weekly sports magazine publishes a special edition for the World Series. The sales forecast is for the number of copies to be normally distributed with mean 800,000 copies and standard deviation 60,000 copies. It costs $.35 to print a copy, and the newsstand price is $1.95. Unsold copies will be scrapped. How many copies should be printed?

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Definitions:

Income

Financial gains, customarily on a constant basis, from vocational activities or investments.

Interest Rate

The percentage charged on a sum of money borrowed or earned on deposited funds over a period of time.

Utility Function

A representation in economics that shows the relationship between the utility (satisfaction) individuals receive from consuming goods and services and different consumption bundles.

Consumption

The action of using goods and services to satisfy needs or desires.